1st Deal Please Help
got my first property under contract!!! a pre-forclosure fmv 165,000.
owner agreed to sell it for whats owed= about 100,000 and wants to walk away with 30,000. this leaves me with 35,000. i am waiting on the 1st and 2nd mortgages to send me the exact numbers to pay off the loans (chase 1st and cit the 2nd) the info should be here this week.
i have just sent my application to the the hard money lenders www.rehabfunding.com. but after calculating the expense of hard money, it looks like ill net less than 15k. do my calculations sound right? (7 points and 18%)the seller was a handy guy and the house is in great shape, one room needs carpet and maybe some paint and cabinet doors updated, ie very little rehab needed.
is there a better way to fund this deal? i have a middle credit score of 700, but little to no money to put into the deal, 3k max. so conventional financing is out. i have also ran an ad looking for someone to sell to using owner financing then sell the note, but no qualified buyers yet. please help!!!
Any number of better ways. but 20% discount (and thats assuming your FMV is accurate, how did you arive at the number) is really kinda slim for a deal like this. How far behind is the seller? How much is the first? How much is the second? What happend that the seller can't make his payments?
my numbers are solid,, my realtor pulled comps and one of them is the next door neighbor, and another is a recent sell on the same street , plus my personal mortgage broker lives on the same street and owns 10 investment properties himself and said the house would have no problems selling for 165k.
there is approx 75k owed on the 1st(chase) and 25k on the 2nd (cit). i have already requested both loan payoff amts and they should be here later this week. my contract is to purchase the house for whats owed= approx 100k and then to pay the seller 30k when i sell or refi.
the sellers situation is this. he is an electrical engineer who's a victim of identity theft, the crooks wiped out his accounts for about 80k. ruining his finances, now he just wants 30k to go buy a house cash in the country.
is there anything else i can do wiith this deal, that wont require hard money? i do have a middle credit score of 700 , however, very little to put into the deal. dont get me wrong this being my 1st deal i wont balk at a 12-15k check, just seems like i cold do a little better with the 35k in equity that i would be getting.
eric
How much time until the auction? You may be able to get a traditional mortgage, with 0-1 points, and 5%. You may even be able to get with 0 down, because of the 65k in equity.
[addsig]
auction is the first monday of may. the only problem with conventional financing is that i just so happen to be refinancing my own personal residence. so i dont know if can qualify for another conventional loan while i am obtaining a new one for my own home.